- Chinese tech giant Huawei on Thursday reported a surge in first-half revenue and net profit on strong smartphone sales.
- Canalys’ data shows that in the first half of the year, Huawei’s smartphone shipments in mainland China reached 22.2 million units, a year-on-year increase of 55%.
OUR TAKE
Since 2019, U.S. sanctions have prevented Huawei from gaining access to advanced American chips and other technology. Washington sees Huawei as a national security risk – a charge the company denies. Since then, U.S. sanctions have expanded to ban the export of highly advanced American chips to all Chinese companies. Washington is trying to block China’s advances in military technology.
–Zora Lin, BTW reporter
What happened
Chinese tech giant Huawei reported a sharp rise in first-half revenue and net profit on strong smartphone sales on Thursday, while its smart car parts business also performed well despite U.S. sanctions.
Net profit for the January-June period climbed 18% to $7.7 billion, while revenue rose 34.3% to $58.9 billion. This is the company’s highest first-half revenue since the same period in 2020.
Huawei did not provide a breakdown of earnings by unit, but a spokesman said its main consumer business, which includes smartphones and personal computers, as well as its smart car parts division, performed strongly.
Huawei has returned to the 5G premium smartphone market with the launch of its Mate 60 series phones last year and its high-end P series phones this year, although sales of these phones are still mostly limited to the domestic market.
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Why it’s important
Huawei’s growth and the background of U.S. sanctions reflect the current competition between China and the United States in the field of science and technology, as well as the strategic layout and policy orientation of the two countries in the field of science and technology.
Despite the US sanctions, Huawei still achieved substantial growth in revenue and net profit, which shows Huawei’s resilience in adversity and its ability to adjust its business, and also reflects domestic consumers’ support for domestic brands.
U.S. sanctions have prompted Huawei and other Chinese companies to seek technological independence and reduce their dependence on outside technology. Huawei’s growth may be partly due to its efforts in independent research and development and technological innovation.
The good performance of Huawei’s smart auto parts business may indicate the company’s development potential in this emerging field, which may also become a new engine for Huawei’s future growth.
